Answer :
When sampling is done with replacement, it means that after selecting a bottle, it is put back into the box before the second bottle is chosen. Hence, the correct option is (C) 0.027.
In this case, there are 12 bottles in total, 2 of which are bad wines.
The probability of selecting a bad wine on each draw is 2/12 = 1/6.
Since the sampling is done with replacement, the probability of selecting a bad wine on the first draw and then again on the second draw is:
P(both bottles are bad) = (1/6) * (1/6) = 1/36 ≈ 0.027
Therefore, the probability that both bottles of wine are bad is approximately 0.027.
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